Kansas Real Estate Market: When Will My Home Value Return?

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Kansas Real Estate Market: When will Home Values Return?

Kansas real estate agents and homeowners had big hopes this spring. They waited in hopes of cashing in on the federal tax credit. They waited, and then they waited some more.

Kansas is just another story in a long line of other states, where the tax credit just didn’t have the intended effect. If you are a homeowner, you may have sat along the sidelines wondering where the parade of buyers was, and if they were going to show up at your home.

Did the Federal Stimulus Help?

Although the $8,000 federal stimulus plan spurred a slight increase in home sales, unfortunately it did not turn out to the big hit for which everyone was hoping.

In fact, now that the federal tax credit in Kansas has expired, the market has yet to build up a new collection of buyers, thereby leaving many homeowners in the lurch, anxiously waiting for an offer to come on the table.

Sales in Omaha, Kansas, for example, saw a slight increase in home sales in both March and April, where 1,307 and 1,537 homes went under contract, respectively. These numbers, however, were the highest in months. May and June, which came after the deadline to sign the tax credit, saw dismal numbers; in fact, pending sales dropped to about half of what the previous two months reported.

The Challenges of Achieving a Balanced Market

Kansas is still trying to achieve a balanced market throughout all of this turmoil. Unlike other markets where there are an abundance of homes, Kansas could actually use more homes on the market. The decrease in construction has slowed the number of new home starts. However, it is important to point out that Kansas still ranks high in terms of a balanced market when compared to other states across the country.

If you’re wondering when the market will begin to stabilize, and when you can expect your home values to turn around, analysts say the Kansas can expect a stabilization of homes values as early as spring 2011; this, of course, will occur after an expected winter downturn. According to the Fiserv Case-Shiller Indexes, home values in Kansas are expected to return to their 2007-2008 peak levels by 2013-2014.

Although the market has seen a downturn since the expiration of the tax credit, many analysts are confident that historically low interest rates and a robust economy are sure to help buoy along the market through next year.

In conclusion, your ability to sell your Kansas home may hinge on future economic circumstances. However, because the national housing bubble phenomenon didn’t influence prices greatly in Kansas, sellers can expect their home values to return by 2013-2014.